1.4% of your service agreements carry half the SA revenue
Across 83,535 contractor service agreements, the 1.4% over $100K in annual value carry 50% of all SA revenue, and that top tier averages $520K each. The other 61% are under $5K. If you renew your book evenly, you are under-protecting the accounts that matter.
Annual contract value distribution
| Annual contract value | Share of agreements | Share of SA revenue |
|---|---|---|
| Under $1K | 27% of SAs | 1% of SA revenue |
| $1K-$5K | 34% of SAs | 6% of SA revenue |
| $5K-$10K | 16% of SAs | 8% of SA revenue |
| $10K-$25K | 14% of SAs | 15% of SA revenue |
| $25K-$100K | 7% of SAs | 21% of SA revenue |
| $100K+ (avg $520K) | 1.4% of SAs | 50% of SA revenue |
Source: The Level Index, 83,535 service agreements with tracked ACV. Aggregated and anonymized. Download the data (JSON), free to cite with attribution.
Renewal: track it by dollars, not count
Healthy SA renewal runs 35 to 50%; below 30% is a retention problem. The trap is that the biggest agreements are often the hardest to renew, because large contracts get re-bid. A book can look healthy on renewal count while quietly bleeding its most valuable accounts. Weight your renewal workflow toward the $25K-plus tier, where the revenue is.
This is the same lesson as the invoice distribution and it connects to SA margin and pull-through: a few accounts carry the book, so protect and grow those first.
Frequently asked questions
Which service agreements actually matter to my revenue?
A tiny slice. Across 83,535 contractor service agreements, the 1.4% with annual contract value over $100K carry 50% of all SA revenue, and that top tier averages $520K per agreement. Meanwhile 61% of SAs are under $5K and carry about 7% of revenue. If you are spreading renewal effort evenly across your whole book, you are under-protecting the handful of accounts that actually pay the bills.
What is a healthy service agreement renewal rate?
Healthy SA renewal runs 35 to 50%. Below 30% signals a retention problem. A pattern worth watching: the highest-ACV accounts are often the hardest to renew (large contracts get re-bid), so a book can look healthy on count while quietly losing its most valuable agreements. Track renewal by revenue tier, not just by agreement count.
What is the average value of a service agreement?
It is a power-law, so the average is misleading on its own. The median SA is small (most are under $5K in annual contract value), but the $100K-plus tier averages $520K and pulls the dollar-weighted average way up. That is the whole point: manage the book by dollars, not by number of agreements.
How is this measured?
From 83,535 contractor service agreements with tracked annual contract value and renewal status in Level's contractor benchmark research. ACV distribution is agreement count and dollars by value tier; renewal rate is renewed divided by expiring agreements. Aggregated and anonymized; no individual company is identified.
From clients
What contractors say after working with us.
“We had a couple thousand service agreements and managed them all the same at renewal. Turned out a tiny slice of them, the big commercial ones, were carrying half our agreement revenue, and we'd been letting those lapse at the same rate as the $200 residential plans. Once we built a renewal workflow that protects the big accounts first, we kept two we'd have lost, worth more than the whole rest of the book.”
“My renewal rate looked fine on paper, high 70s. Then we looked at it by revenue instead of by count and it was ugly, we were renewing all the little agreements and quietly losing the big ones because nobody proactively worked them. The valuable contracts get re-bid, so they need attention the small ones don't. Fixed that and recurring revenue finally started compounding.”
“I always thought the money in service agreements was the agreement fee itself. The real value is the pull-through repair work, and which customers actually generate it is massively concentrated in a handful of accounts. Stopped treating the book as one big undifferentiated list and started managing the top tier like the asset it is.”
Analysis by Sam Yang, Founder, Level. Compiled from Level's proprietary contractor benchmark research.
Source: The Level Index, Service Agreement Value Benchmarks, 83,535 service agreements. US contractors. Data vintage 2022 to 2026, last updated Q3 2026. Aggregated and anonymized.
Suggested citation: "The Level Index, Service Agreement Value Benchmarks, Level (levelcfo.com), 2026." Method: see the benchmark methodology.
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